Meeting Notice- March 11, 2019
Meeting Summary
March 11, 2019
A regular meeting of the Board was held on Monday, March 11, 2019. Attending the meeting in person and by teleconference were: President Bruce Wilson, Secretary Debbie Director, Treasurer Helen Hoart, ARC Head Paul Salditt, and Vice President Louisa Hollman.
The first item of business, the 2019 Proposed Budget, was presented by Treasurer Helen Hoart. Previously the details of the proposed budget had been circulated to all Board members. Helen discussed in more detail the ambitious capital improvement projects that were included in this year’s budget, design and preliminary construction of a new storage shed and the paving and drainage project at the south end of the neighborhood. Helen further explained that lifeguard salaries would be another contributing factor to the increase in projected expenses for the year. Based on information provided by our Beach Manager, it appears that the current hourly rate set for the North Shores lifeguards is below the rate paid by neighboring communities. The proposed increase of approximately $1-$2 dollars/hour would result in a permanent increase for the budget.
Capital expenses included in the 2019 budget represented 65% of the estimated cost for design and construction of the new storage shed with construction possibly starting in the fall of 2019. The budget proposal applies a budget surplus from 2018 to this year, resulting in a projected deficit for the 2019 budget. President Bruce Wilson further explained that an emergency drainage expense to repair a sinkhole and replace a collapsed drainage pipe under Farview Road also contributed to the proposed expenses for 2019.
After further discussion of operating expense needs, including continuing litigation expenses covered by insurance, the Board then engaged in a discussion about the current level of the annual assessment to homeowners. Rising expenses could not be fully offset by the previous years’ surplus and an increase in the assessment would be needed for financial planning that addresses rising wages and aging infrastructure capital planning. A review of the assessment level history indicated that the assessment had not increased since 2014. After a board discussion, it was agreed that an increase of $150.00 would provide a level of income necessary for longer term expense planning. The level of increase is consistent with the previous increase in dues in 2014. President Wilson moved to approve the proposed 2019 budget and associated assessment for 2019 at $2400.00. On motion duly made and seconded, the proposed 2019 budget and assessment level were both unanimously approved by the Board, subject to presentation to the homeowners at the annual meeting in May.
The next item on the agenda was the Annual Meeting and the associated mailings to homeowners. Secretary Debbie Director explained the plans for this years’ annual mailing to homeowners. Deadlines for the submission of documents from other board members were reviewed to accommodate the proof approval deadline. This year North Shores will be using a local printer for the mailing. The discussion included the need for some additional support in the office for oversight and training before the Annual Meeting. President Wilson recommended engaging an independent consultant to accomplish this task. An assessment and report of the office operation would be completed and presented to the Board over the summer. President Wilson will bring a specific proposal to the Board at its next meeting.
The Board then reviewed the votes taken by email since December 2, 2018. The list of votes was included in the meeting Agenda and reviewed by the directors. The Board unanimously approved the ratification of votes taken by email.
Review and ratification of votes taken by email:
- 3 Harbor Road construction application – approved
- December Meeting Minutes — approved
- 57 Ocean Drive – ARC covenant hearing postponement — approved
- 2019 Drainage and Paving proposal – approved